Addressing Methane Risks in Nigeria’s Gas Ambitions

Transcript

There have been several national conversations about Nigeria’s gas ambitions. What exactly are these ambitions?

Nigeria is a fossil fuel-dependent economy, with the government determined to leverage its gas resources as a transition fuel for domestic energy and export revenues.

Nigeria’s gas ambition focuses on increasing gas usage to address its energy access issues, as only 40% of Nigerians currently have access to power. The government also aims to use revenues from gas exports to support its development goals.

Domestically, the focus is on expanding gas use for power generation while gradually increasing the adoption of solar and other renewable energy sources. Additionally, the government seeks to promote a shift from kerosene and charcoal to liquefied petroleum gas (LPG) for cooking and from traditional fuels to compressed natural gas (CNG) for transportation. At the same time, Nigeria plans to increase gas exports to international trade partners.

However, these ambitions face significant challenges due to the global shift toward a low-carbon economy.

What are the implications of Nigeria's gas expansion plans for methane emissions and public health, and what measures should the government implement to mitigate these risks?

The global shift toward a low-carbon economy aims to reduce emissions from fossil fuels, with countries committing to emission reductions either conditionally or unconditionally. Nigeria has pledged to cut its greenhouse gas emissions by 20 percent using its revenues and resources and by 47 percent if supported by the international community with financing, technology, and capacity building. Methane is a potent greenhouse gas—80 times more powerful than carbon dioxide over a 20-year period—with fossil fuels being a major source. As Nigeria seeks to expand its gas ambitions, there is a significant risk of increased methane emissions from gas flaring, venting, and fugitive emissions.

Therefore, as the government pushes for increased gas utilization, it must also put in place technologies and policies to curb methane emissions, ensuring that Nigeria meets its global commitments, while also ensuring that those who live around these resources are not affected. Increased methane levels pose health risks for those residing around oil installations, including cardiovascular and respiratory issues.

Why is it important for Nigeria to reduce methane emissions beyond environmental concerns, and what economic implications could arise from failing to do so?

Beyond environmental concerns, Nigeria must reduce methane emissions for several other critical reasons. One key reason is economic. The government aims to leverage its gas resources to generate export revenues, which can be used to achieve development goals such as building roads, hospitals, and improving public services. However, as countries around the world commit to a low-carbon economy, they are also reducing their fossil fuel imports, including gas. Where imports do occur, strict regulations will be in place, allowing only low-emission products to enter those markets.

Nigeria risks losing access to these markets if it fails to implement the right policies to reduce methane emissions. Europe, a key market for Nigeria, accounts for about 40 percent of Nigeria’s crude oil exports and 60 percent of its LNG exports. The inability to meet emission reduction standards could result in significant revenue losses—funds the government needs to address pressing economic issues like high inflation, unemployment, and broader development challenges. Reducing methane emissions is crucial from an environmental standpoint and for Nigeria’s economic stability and growth.

Who are the key stakeholders responsible for ensuring Nigeria reduces its methane emissions?

There are several institutions involved in addressing methane emissions in Nigeria. The National Council on Climate Change (NCCC) coordinates all of Nigeria’s efforts to mitigate climate change. Additionally, regulatory bodies play a crucial role in ensuring that companies meet methane emission standards so that their products remain exportable. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are key regulators in this space. The Federal Ministry of Environment is also involved in minimizing the health and environmental impacts of methane emissions, particularly on affected communities.

What should be the focus of concerned stakeholders to strengthen emission reduction efforts?

Firstly, the National Council on Climate Change should provide tools to track progress—specifically, how far and effectively Nigeria is advancing its commitments to reduce methane emissions.

The regulatory bodies must strengthen laws, policies, and regulations to require companies to minimize or eliminate their emissions. While the upstream regulator has issued guidelines, the midstream and downstream sectors currently lack such frameworks, making it essential to cover the entire field. Additionally, ramping up the gas commercialization program will help reduce gas flaring, mitigating environmental impacts and health risks for communities living near oil operations.

Civil society organizations (CSOs) can also play a vital role by raising awareness among stakeholders, especially in areas where methane emissions are likely to increase, helping residents understand the impacts on their lives and livelihoods, and monitoring the activities of companies and regulators to ensure compliance with emission standards.

What international best practices or standards can Nigeria adopt?

There are standards that the companies are expected to adhere to, such as the Decarbonization Charter and the Oil and Gas Methane Partnership (OGNP), among others, to which many companies have already signed up. However, in countries like Nigeria, companies may not always comply with these standards unless held accountable. This is where civil society, communities, and affected individuals play a critical role. They must advocate for companies to adhere to these international best practices, as doing so will help achieve lower emissions, ultimately improving the lives and livelihoods of those living in affected areas.